Lyric discussion by CharmingMan 

Cover art for Ivo lyrics by Cocteau Twins

..the song is presumably named after the producer Ivo Watts Russell - who produced many of the artists on the 4AD label.

Indeed. The song was originally called "Peep-Bo" but she changed it to "Ivo" after Mr. Watts-Russell, I believe that then triggered calling all the other songs on the album after unusual names as well.